STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen proposed establishing a more unified system for joint energy purchases across the EU amidst escalating fuel costs. She outlined that a new task force would coordinate energy demands among member states and designate a market operator to oversee joint procurement efforts. This initiative aims to advance the EU beyond its existing framework of matching individual buyers with sellers. Von der Leyen announced these measures during a debate in the European Parliament prior to the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, European gas prices have surged by 140% since late February, with diesel prices doubling. She emphasized that increased costs for imported fossil fuels have added roughly €100 billion to Europe’s energy bill without a corresponding increase in energy supply. The European Commission intends to extend a temporary state aid framework aimed at sectors under severe pressure, along with targeted support for vulnerable households. She pointed to energy voucher schemes in France and Romania as examples of this targeted assistance.
Alongside the procurement proposal, the Commission is also implementing measures focused on energy supply and refining. On October 2, G7 members agreed to release 100 million barrels through the International Energy Agency over the next four months, with an emphasis on a significant diesel release during the first 20 days. Additionally, the EU will grant exporters an extra year of flexibility under methane regulations. Von der Leyen said this step would help mitigate additional costs amid current market tensions.
Focus Shifts to Supply Chain Coordination
The European Commission is set to initiate a strategic dialogue with European refineries to address supply concerns and cost issues. Energy Commissioner Dan Jørgensen and Defense Commissioner Andrius Kubilius will lead these discussions. Von der Leyen highlighted that the dialogue will also cover supply requirements for defense purposes. She also noted significant disparities across national energy markets, where electricity prices can vary from around €145 per megawatt-hour in one country to approximately €70 in another, depending on the energy mix.
This new procurement task force builds on the joint EU energy buying initiatives introduced following Russia’s drastic reduction in gas supplies in 2022. During that period, demand was pooled and European buyers were brought together to ensure supply security. Von der Leyen stated that Russian gas made up 45% of EU imports then, but this share has now fallen to 12%. The Commission’s current energy policy aims to eliminate reliance on Russian gas entirely by the end of 2026.
Electrification Continues to Play a Central Role
Von der Leyen connected the immediate response to the EU’s long-term goal of expanding renewable and domestic clean electricity generation. She revealed that over 70% of EU electricity now originates from renewable sources and nuclear energy. Last year, wind and solar generated more electricity than all fossil fuels combined. During that period, Europe added more than 80 gigawatts of renewable capacity. Still, projects with a capacity roughly six times larger are awaiting grid connections, slowing progress.
Currently, electricity accounts for less than 25% of the final energy consumption within the EU. The Commission’s electrification strategy aims to nearly double this share by 2040. She stated that increased electrification could reduce annual fossil fuel imports by as much as €260 billion. The European Commission has additional measures planned to support this transition in the coming months. EU leaders will also address concerns over rising energy costs, supply security, and broader economic issues at their meetings scheduled for October 15 and 16.